K&D eyes preservation tax credits for Terminal Tower redo

A key first step is underway in transforming Cleveland's Terminal Tower for the live, work and play era of downtown development with the addition of apartments.

Willoughby-based K&D Group has filed to seek Ohio Historic Preservation Tax Credits for the $100 million project.

K&D CEO Doug Price said early Friday morning, March 31, that "our application just went in." That was deadline day for one of two rounds of applications for the intensely competitive state program.

K&D's plan calls for adding 308 residences to the low-rise portion of the 52-story tower.

"We've been able to add a few suites," Price said of the design of the redo. Originally the plan called for 293 suites.

K&D seeks a state tax credit for $5 million of qualified rehabilitation work in adding apartments to the 52-story office building, which was the tallest office building outside New York City in 1930. It held that distinction for 40 years. Key Tower surpassed it as the city's tallest building in 1990.

However, Terminal Tower likely won't be the only downtown Cleveland building going in for funds this round.

Tom Yablonsky, executive vice president of the Downtown Cleveland Alliance and executive director of the Warehouse and Gateway district development corporations, said, "We expect a robust amount of activity from multiple groups in terms of both quantity and quality."

However, Yablonsky declined to identify other candidates because those consultations are private, and applications don't become public record until they are filed with the state.

The Ohio Development Services Agency and Ohio History Connection jointly administer the state program. The state will identify the winners by June 30, according to its website.

Should K&D win an allocation, it could not begin work on the project until Forest City Realty Trust vacates its space in the building in 2018. Forest City sold Terminal Tower to K&D for $38.5 million on Sept. 15, 2016, and plans to move its headquarters to Key Tower.